Ritchie Bros. Completes Final Auctions of 2014

Wed January 07, 2015 - National Edition
CEG

The company plans to release its full audited financial results for 2014 after market close on February 26, 2015.
The company plans to release its full audited financial results for 2014 after market close on February 26, 2015.



Ritchie Bros. Auctioneers Incorporated sold approximately $4.2 billion of equipment through 349 unreserved auctions and its online equipment marketplace during 2014. This is a new annual record for the company, and represents a 10.5 percent increase in gross auction proceeds (GAP) compared to 2013. During the fourth quarter of 2014, the company achieved gross auction proceeds of $1.2 billion, a record for the fourth quarter and an increase of 11.7 percent compared to the previous fourth quarter record achieved last year.

Ritchie Bros. conducted its final unreserved auction of 2014 on Dec. 19 in Newark, N.J.

The company plans to release its full audited financial results for 2014 after market close on February 26, 2015.

“We’re pleased to have achieved a new annual record of $4.2 billion in Gross Auction Proceeds in 2014, as well as a new annual record of $1.8 billion of online sales," said Ravi Saligram, chief executive officer. "We’re focusing on how to cater to the unique needs and preferences of specific sectors, and exploring ways to broaden our relationships with our customers. I look forward to sharing more details and the results of our targeted market strategy over the next several quarters. These activities will further solidify our leading market position and expand our global full service offering."

Growth in Transportation and Agricultural Equipment Sales

Ritchie Bros. grew its business in both the transportation and agricultural sectors meaningfully during 2014.

• GAP from transportation sector assets increased 13 percent from 2013 to $650+ million in 2014. During the year, Ritchie Bros. sold more than 12,800 transport trucks for $310+ million.

• During 2014, Ritchie Bros. held 116 agricultural auctions in Canada, the United States and Europe. GAP from agricultural and related real estate assets increased 11 percent from 2013, to $435+ million in 2014.

Largest Year Ever in Canada: More Than Ca$1.4 Billion of Equipment Sold in 2014

Ritchie Bros. sold more than $1.3 billion of equipment and trucks in Canada during 2014 — a new record for the company’s Canadian operations. A number of other Company records were broken in Canada this year, including:

• Ritchie Bros. Edmonton, AB auction site sold 32,500+ equipment items for $511+ million, a 20 percent increase compared to $424+ million in 2013

• The Company held its largest Canadian auction ever in Edmonton, AB in April, selling more than $129+ million of equipment in three days (April 23 to 25, 2014)

• The Edmonton April auction also set new company-wide records for online gross auction proceeds $58+ million, total number of registered bidders (9,400+) and number of buyers (2,600+)

• Ritchie Bros. also held its largest ever auctions in Chilliwack, BC (Oct. 15) and Toronto, ON (Dec. 8 to 9) in 2014

Online Sales

Ritchie Bros. attracted record online bidder registrations and sold approximately $1.8 billion of equipment, trucks and other assets to online auction bidders and EquipmentOne customers in 2014, a 17.5 percent increase over 2013 and the highest amount ever sold online by the company in one year.

EquipmentOne Sells Approx. $100 Million in Gross Transaction Value in 2014

EquipmentOne, the company’s online equipment marketplace, has generated approximately $100 million in gross transaction value (GTV) so far this year. EquipmentOne celebrated its first anniversary in 2014 and is viewed as a future growth engine for Ritchie Bros.

Ritchie Bros. Financial Services Finances Over $175 Million in 2014

Ritchie Bros. Financial Services (RBFS) provided over $175 million of financing to equipment buyers so far this year, a new record for this growing business and a 75 percent increase in financing activity compared to 2013. RBFS works with select lending partners to find financing solutions for customers purchasing equipment, including loans and lease-to-own programs. RBFS does not utilize company capital in its financing activities.

Upcoming Auctions

There are currently 83 unreserved auctions on the 2015 Ritchie Bros. auction calendar at www.rbauction.com, including:

• Las Vegas, Nev., on Feb. 6, 2015

• Houston, Texas, on Feb. 11 to 12, 2015

• Tipton, Calif., on Feb. 13, 2015

• Orlando, Fla., (a five-day auction) on Feb. 16 to 20, 2015

• Donington Park, United Kingdom on Feb. 24, 2015

• Albany, N.Y., on Feb. 25, 2015

• Casper, Wyo., on March 25, 2015

Executive and Board Changes During 2014

Several important executive and board changes were announced during the year, including the appointment of Ravi Saligram as chief executive officer and Beverley Briscoe as chair of the board, both of which occurred in June 2014. As part of Saligram’s focus on reinvigorating growth, the company announced the appointment of Jim Barr as group president, emerging businesses, brand innovation and technology services in November. The company also announced that a new chief financial officer and chief human resources officer will be named in 2015.

Dividends

Ritchie Bros. increased its quarterly cash dividend in August 2014 to $0.14 and paid shareholders $57.9 million in total dividends during the year, an increase of 7.4 percent compared to $53.9 million in 2013.

For more information, visit rbauction.com or EquipmentOne.com.